Let's hold up a bit. Whether or not he's wrong, I think the type of thinking he does is useful here.
Our entire society is detail-obsessed and linear thinking obsessed. Hazelton offers another view, which is a top-down analysis based on a high level of abstraction. If new ideas are going to emerge, they're going to come from this process, not more churning through details based on past precedent.
I think what he's doing here is quite valid. Markets need some regulation; that's clear, and as much as I'd like to agree with my libertarian friends, I can't stomach the idea of a world following the ethics of fast food and television, which is what would result with pure consumer markets.
However, it's important to make sure that regulation doesn't screw up the process of the markets themselves, and I think Hazelton's analysis here shows a good way to think about that kind of problem.
Whether or not I think he's wrong in this instance has no bearing on the validity of his inquiries as a whole.